PETER Everington is a candidate for the title of ''Doctor Doom'' with his negative views on Hong Kong financial markets.
Mr Everington, managing director of Regent Fund Management, said: ''The Hang Seng will fall to 6,000 by the end of this year and 4,000 by the end of next year and there will be terrific damage to the property sector,'' he said.
''Property prices will fall from their highs in the order of 40 to 50 per cent.
''Everything suggests to me that Hong Kong is a bubble about to burst, whether you are looking at residential rent or a supermarket saying prices have to rise because rents are skyrocketing.'' Mr Everington said while the Hong Kong stock market might look good in terms of the average market price earnings multiple, the attraction was an illusion.
''Look at property developers. Henderson Land is selling on 15 times historic earnings and 10 times prospective but that is based on a net after-tax profit margin of 70 per cent.
''You can do that in the good times but one day or another those margins will collapse.'' He said another ominous sign was the big involvement of Asia funds in the Hong Kong market.